Stacks, the biggest Bitcoin layer-2 network, will be in the spotlight this week as the rollout of the Nakamoto upgrade starts. 
Stacks (<a href="https://crypto.news/price/stacks/">STX</a>) token was trading at $1.80 on Monday, Aug. 26, up by 68% from its lowest level in August.&nbsp; 
The token will be in focus as developers begin rolling out the Nakamoto upgrade, the most significant event in the platform’s history. 
According to a recent X post by the developers, this upgrade is expected to be a game-changer for the network. It will reduce the average transaction time from 10 minutes to just seconds, enabling new use cases such as minting liquid stacking tokens, depositing them into Decentralized Finance (DeFi) applications, and borrowing against liquidity. 
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 In conclusion, the Nakamoto upgrade will facilitate the: • Interaction with DeFi apps in seconds • Implementation of DeFi strategies, which require fast blocks • Onboarding builders looking to build high-throughput use cases on Bitcoin. 4/4— stacks.btc (@Stacks) <a href="https://twitter.com/Stacks/status/1827813288278970534?ref_src=twsrc%5Etfw" target="_blank" rel="">August 25, 2024</a>
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The Nakamoto upgrade will also pave the way for the upcoming sBTC, an asset pegged 1:1 to Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>). This will simplify the use of Bitcoin in DeFi, non-fungible tokens (NFTs), and gaming, differentiating it from wrapped Bitcoin (wBTC), which is entrusted to a single custodian. Unlike wBTC, sBTC will be <a href="https://stacks-network.github.io/stacks/sbtc.pdf" target="_blank" rel="">decentralized</a>, offering features like censorship resistance, cost efficiency, and high security. 
Once the upgrade process is complete, developers anticipate that it will attract more creators in sectors like gaming and NFTs. 
 You might also like: <a href="https://crypto.news/stacks-the-og-bitcoin-l2-shows-the-power-of-being-early-opinion/"> Stacks, the OG Bitcoin L2, shows the power of being early | Opinion </a> 
Stacks, the largest layer-2 network for Bitcoin, has attracted tens of developers like wallets, NFTs, and socialFi. Its DeFi ecosystem has accumulated over <a href="https://defillama.com/chain/Stacks" target="_blank" rel="">$100 million</a> in assets, with StackingDAO, ALEX, Zest, and Bitflow being the biggest players in the ecosystem. 
Layer-2 networks have grown substantially in the past few years. Arbitrum (<a href="https://crypto.news/price/arbitrum/">ARB</a>) has become the <a href="https://defillama.com/dexs/chains" target="_blank" rel="">biggest player</a> in the industry while networks like Base, Optimism, and Blast are seeing strong momentum. 
<h2 class="wp-block-heading" id="stacks-flips-key-support">Stacks flips key support</h2> 
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 Stacks price chart | Source: <a href="https://www.tradingview.com/symbols/STXUSD/?exchange=BINANCE" target="_blank" rel="">TradingView</a>
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The STX token has rebounded from this month’s low of $1.0638 to $1.80. In this rebound, it has moved above the 50-day moving average and flipped the upper side of the descending channel into a new support level. 
Stacks has also moved slightly above the 61.8% retracement point. Therefore, the token may continue rising as bulls target the 50% retracement point at $2.11, 20% above the Aug. 26 level. 
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Bitcoin Layer 2 Stacks readies for Nakamoto upgrade activation

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